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Board diversity, earnings management and firm performance: the case of Kuwait

Student thesis: Doctoral Thesis

This thesis aims to examine the consequences of board diversity in Kuwait. The objectives are to measure the impact of gender, age, national diversity on earnings management (EM), besides firm performance (FP). This research study raises the following question: Does board diversity affect earnings management and firm performance? This thesis uses data from 103 non-financial Kuwaiti listed companies in the period from 2010 to 2017. The data was collected from secondary sources such as annual reports and S&P Capital IQ. The data analysis methods are correlation and multi-regression. Earnings management measured by using the model modified by Jones (1995) and Kothari et al. (2005). Firm performance measured by ROA, ROE and Tobin’s Q. The independent variables are gender diversity, age diversity, nationality diversity. The findings show that there is no association between gender diversity and earnings management. Also, this study found a positive relationship between age diversity and earnings management, besides no relationship found between national diversity and earnings management. Moreover, the findings show a mix of results between gender, age, national diversity and firm performance, which is contrary to agency, resource dependency and social capital theories.
Original languageEnglish
Awarding Institution
Supervisors/Advisors
Award dateOct 2019

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